Wash and dry apples.
Place caramels and water in a deep narrow glass bowl.
Microwave 2 minutes.
Stir until smooth.
Dip apples into caramel mixture.
Twirl to coat and dip into chopped nuts.
Place on buttered waxed paper.
If caramel mixture becomes too stiff, microwave another 20 seconds.
Enough for 5 or 6 apples.